Training on Credit Control and Debt Management

Effective credit control and debt management are critical for maintaining an organization’s liquidity, financial stability, and long-term sustainability. Poor management of receivables and overdue accounts can lead to cash flow challenges, increased financial risk, and operational inefficiencies. Organizations must implement structured credit policies, monitor debtor performance, and apply strategies to recover debts efficiently.

This 5-day course provides participants with the knowledge and practical skills to manage credit effectively and control debt. Participants will learn how to assess credit risk, establish credit policies, monitor accounts receivable, implement collection strategies, and maintain financial discipline. The course also covers cost-effective debt recovery techniques, dispute management, and financial reporting for receivables.

Key areas include credit assessment and scoring, credit limits and terms, collection methods, legal considerations in debt recovery, cash flow optimization, and integrating credit control with organizational financial planning. Practical exercises, case studies, and scenario-based learning ensure participants can apply these skills in real-world organizational settings.

By the end of the program, participants will be able to implement robust credit control frameworks, reduce bad debts, enhance cash flow, and strengthen overall financial management within their organizations.

Duration

5 Days

Who Should Attend

• Credit managers and supervisors
• Accounts receivable managers and staff
• Financial controllers and analysts
• Debt collection officers
• Small business owners
• Financial consultants
• Professionals responsible for credit, debt recovery, or receivables management

Organizational Impact

• Improves cash flow and overall financial health through proactive credit and debt management

• Strengthens risk management by reducing exposure to bad debt

• Enhances reputation and credibility with customers and suppliers

Personal Impact

• Equips participants with in-demand credit and financial management skills

• Supports career progression into senior credit, leadership, or finance roles

• Enables direct contribution to organizational sustainability through effective credit strategies

• Builds confidence to lead and champion robust financial practices

By the end of this course, participants will be able to

• Understand the fundamentals of credit control and debt management.
• Develop effective credit policies and procedures.
• Implement strategies for minimizing credit risk.
• Improve debt collection processes and techniques.
• Analyze customer creditworthiness and make informed credit decisions.
• Utilize financial tools and techniques for managing credit and debt.
• Understand legal aspects related to credit control and debt recovery.

Module 1: Introduction to Credit Control

• Definition and Types of Credit Control/management
• Quantitative and Qualitative Credit Control
• Principles of Credit Control – Liquidity, Diversity, Safety, Profitability, Stability
• Key policies: credit limits, payment terms, and quality standards

Module 2: Credit Risk Evaluation

• Financial factors affecting credit decisions – Financial statements, expected loss, Loss given default, Probability of default, Exposure at default
• Analysis and projection of cash flow
• Activity and profitability ratios
• Evaluation of capacity and borrowing needs
• Credit VaR and Liquidity ratio

Module 3: Credit Policy Development

• Designing an effective credit policy tailored to the organization’s needs
• Setting credit limits and terms
• Conducting credit checks and assessments

Module 4: Determining Customers’ Creditworthiness

• Credit Insurance
• Trade references
• Credit application forms
• Banker’s reference
• Credit Control routines
• Debt turns and aged debt analysis
• Invoices
• Credit history

Module 5: Fundamentals of Debt Management

• Introduction and definition of terms
• Types of Debt Management Plans
• Factors affecting customers’ debt repayment
• Cost of running a ledger
• Principles of Debt Management

Module 6: Communication

• Essentials of communication
• Negotiation skills for debt recovery
• Telephone skills
• Managing demanding clients and controlling anger
• Written communication
• When to opt for written communication

Module 7: Debt Recovery Mechanisms

• The courts and their powers of debt collection
• Statutory demands
• Insolvency and Bankruptcy
• The 3-track system
• Administration orders
• Tax relief

Module 8: Debt Management Agencies

• Credit checking agencies
• Data provided by credit management agencies
• Factoring companies and the Services they render
• Specialist legal services
• Debt collection agents – ­Private debt collection agents – Sheriffs – Bailiffs
• Legal Procedures for debt recovery
• Understanding debtor’s evasion tactics

Module 9: Compliance and Regulations

• Laws and regulations related to credit and debt management
• Compliance requirements for debt collection practices
• Ensuring ethical conduct in credit control and debt management